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International Paper Declares Quarterly Dividend of $0.44 per Share

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Price movement

International Paper Company (IP) has a market cap of $18.3 billion. It rose by 2.7% to close at $44.17 per share on July 12, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 5.8%, 2.3%, and 19.9%, respectively, on the same day. IP is trading 5.3% above its 20-day moving average, 5.2% above its 50-day moving average, and 12.7% above its 200-day moving average.

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Related ETF and peers

The Guggenheim MSCI Global Timber ETF (CUT) invests 4.3% of its holdings in International Paper. The ETF tracks the MSCI ACWI IMI Timber Select Capped Index, a market-cap-weighted index of global timber equities. The YTD price movement of CUT was -0.51% on July 12.

The market caps of International Paper’s competitors are as follows:

  • Packaging Corporation of America (PKG): $6.7 billion
  • Domtar (UFS): $2.2 billion
  • KapStone Paper and Packaging (KS): $1.3 billion

International Paper declared dividend

International Paper has declared a quarterly dividend of $0.44 per share on its common stock. The dividend will be paid on September 15, 2016, to shareholders of record at the close of business on August 15, 2016.

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International Paper’s performance in 1Q16

International Paper reported 1Q16 net sales of $5,110.0 million, a fall of 7.4% compared to net sales of $5,517.0 million in 1Q15. Sales from the industrial packaging, printing papers, and consumer packaging segments fell by 2.8%, 3.6%, and 36.4%, respectively, in 1Q16 compared to 1Q15. The company reported net losses on sales and impairment of businesses of $37.0 million in 1Q16.

Its net income and EPS (earnings per share) rose to $334.0 million and $0.81, respectively, in 1Q16, compared to $313.0 million and $0.74, respectively, in 1Q15.

International Paper’s cash and temporary investments rose by 10%, and its inventories fell by 0.49% in 1Q16 compared to 4Q15. Its current ratio rose to 1.66x, and its long-term DE (debt-to-equity) ratio fell to 2.1x in 1Q16, compared to current and long-term DE ratios of 1.65x and 2.3x, respectively, in 4Q15. The company reported a free cash flow of $311.0 million in 1Q16.

In the next part of this series, we’ll discuss Bunge Limited.

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